NELLI GALIMKHANOVA: DIGITAL CHANGES INFLUENCE NOT ONLY IT-INDUSTRY BUT ALSO CLASSICAL IDUSTRIAL ECONOMY MARKETS

FAS representative gave an example as to how modern technologies impact analysis of the state of competition in the markets

Digital economy and big data control buyers’ consciousness and opinions. This is a challenge for both the society and the antimonopoly body of any country. In its turn, it is closely related to an important task of a competition agency: analyzing the state of competition on the markets, reminded Head of FAS Department of Industry Control, Nelli Galimkhanova.

Speaking at a traditional December antimonopoly conference in Skolkovo, she stated that the code of Russian antimonopoly regulation comprises No.220 Order that determines the specifics of analyzing the state of competition on the markets. Customers’ opinion is one of the methods to define products and geographic market boundaries.

“How are we going to analyze the state of competition if digital economy and big data are changing customers’ opinions? It should be pointed out that determining customers opinions is a large-scale task which is of huge significance”, explained Nelli Galimkhanova.

With an example of analyzing the market of suspended ceilings, she showed how closely related are the markets of digital and classical industrial economy.

“We surveyed companies that are consumers of such systems. Respondents were staff members that are ordinary people, who have accounts in social media.  Working in this field, the staff to a certain extent searched data on suspended ceilings. Then “personified” targeting came into action and offered information to the user, thus, shaping his / her understanding about a particular market”, informed Nelli Galimkhanova. “Therefore, filling in our survey sheets, customer’s opinion is formed based on the information obtained from social media and other sources. It is possible to make a conclusion that even, for instance, such market as suspended ceilings, which is not digital, experiences the effect of the current transformations”.

As a result, the competition authority is facing new challenges:

- How to evaluate customers’ opinions under the conditions of personalized targeting;

- If customers’ opinions are influenced, which methods of defining products and geographical market boundaries can help reach objective conclusions to determine the state of competition on the market.

“This implies the following challenges: which academic theories and models must be followed in our analysis or studies to determine the actual level of competition, and which competences an antimonopoly officer should have in the digital economy?” asked Head of FAS Department of Industry Control.

In the follow-up discussion the participants shared their opinions about the questions raised and concluded that the staff of the antimonopoly bodies must possess interdisciplinary knowledge, the basis of which should be economics, law, sociology and psychology.